Page 76 - Inegrated Annual Report 2020-Eng

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | 31 DECEMBER 2020

11. INVENTORIES

2020 2019
AED’000 AED’000
Spare parts and consumables 425,105 425,682
Raw materials 1,494 1,147
Finished goods 8,798 2,482
Less: allowance for slow moving and obsolete
(43,723) (35,671)
inventories

391,674 393,640

As at 31 December 2020, an amount of AED 43,723 thousand (2019: AED 35,671 thousand) is recognised as
an allowance for slow moving and obsolete inventories.

2020 2019
AED’000 AED’000
At 1 January 35,671 30,576
Charge for the year 8,052 5,095

At 31 December 43,723 35,671

12. TRADE AND OTHER RECEIVABLES

2020 2019
AED’000 AED’000
Trade receivables, net of allowance for expected
credit loss 869,122 973,347
Retention receivables – current portion 53,534 49,722
Unbilled receivables, net of allowance for expected
credit loss 2,732,565 2,311,962
Deposits and prepayments 41,115 43,071
Deposits and prepayments 994,167 -
Other receivables 213,736 168,414

4,904,239 3,546,516

Receivables, net are expected, on the basis of past experience, to be fully recoverable. It is not the practice of
the Group to obtain collateral over receivables and the vast majority are, therefore, unsecured.

Contract asset comprises costs incurred on certain elements of one of the Group’s major projects, on which the
Group is not contractually entitled to earn revenue until the various work packages are completed and handed
over. While none of the work packages have been handed over till date, commencing early 2021, a significant
number of packages are scheduled to be completed and handed over, which will result in a winding down of the
balance throughout the remainder of 2021.

76 2020 Integrated Annual Report